Market Closes - April 16, 2013

As the outside markets showed resiliency today and the US dollar weakened, agricultural futures rallied on ideas demand is still strong for old-crop corn and soybeans. Traders were speculating that China may still have to buy beans from the U.S. because Brazil’s slow shipment pace (even as harvest exceeds 80% complete). The red flag is bird flu in China which has reduced chicken demand, so less feed is needed. Slow planting and continued cold, wet weather in the Corn Belt adds a little support to the market. Extreme cold later this week may damage some wheat acres in the southern Plains, while snow-covered ground in the north portends delayed spring wheat seedings.

Cattle futures managed small gains on the close in sympathy with the general commodity price rebound. Cash cattle and beef markets don’t show signs of significantly improving. In boxed beef, Choice UP 0.56 at 190.45 and Select UP 0.02 at 183.93.

Lean Hog futures posted modest gains today on a mixed cash hog market. Futures are at a premium to cash, so upside would seem to be limited until pork values rise.